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GSM Association (formerly GSM MoU Association):

Another year of dramatic growth by GSM networks

January 15, 1999 Assocation  press release


GSM on course for quarter of a billion customers by millennium

Early indications hint that 1998 was yet another record breaking year for global GSM take-up, said the GSM Association today, as year end totals are expected to show 135 million customers - exceeding early industry predictions by as much as 15 million.

"We believe that around 65 million customers signed up for GSM services in 1998, almost doubling the previous year's total, taking GSM to 45 percent of the world wireless market, or 62 percent of the global digital market," said Richard Midgett, Chairman of the GSM Association.

"On the back of this, we predict with confidence that the 1999 year end total could soar as high as 250 million."

The GSM Association, which represents 323 GSM and GSM/Satellite operators, administrators and regulators from 129 countries around the world, pointed toward examples of soaring global markets as key reasons behind continued impressive growth rates.

GSM impact once again stretched far and wide in 1998. By the mid year point, China became the largest single GSM market in the world, maintaining its lead to reach more than 18 million level by close of the year.

In North America, where final customer totals are expected to reach more than 3 Million for end 1998, there is commercial GSM service offered in 2,400 cities - 43 U.S. States and four Canadian Provinces - and GSM is present in 8 of the top 10 and in 20 of the top 25 licensed markets.

In the UK, France, Germany and Italy national markets climbed above 10 million customer levels in 1998*.

"It is also important to note that by mid point last year, the world GSM total overtook the total for all analogue customers for the first time ever. By end year, we saw GSM outstripping analogue growth by one and a third," said Midgett. "We also witnessed significant and widespread take up of a host of GSM value added services, apart from voice usage in many markets."

"1998 heralded a number of advances in wireless data and text wireless applications boosted by customer hunger for a range of non voice based services. Last year we saw development of two of the first great applications for the new wireless commerce era: the launch of 'electronic wallet' type services and GSM based location services."

On the back of this, the GSM world is seeing incredible levels of customer uptake for data and text messaging services. Last year in Germany, for example, customer usage for Short Messaging Services (SMS) reached phenomenal average volumes of around 100,000 messages per hour. It is predicted that this scale of growth will continue to surge throughout the next few years.

"These developments are all exceptional in their own right, with growth at record levels, the world's leading digital standard is poised on the threshold of many great advances and unprecedented heights of customer growth in the years to come." Concluded Midgett.

Notes to editors: GSM is a registered trademark of the GSM Association.

The GSM Association was formerly known as the GSM MoU Association.

Statistics source: EMC World Cellular Database and other GSM Association sources.

1998 year end total figures for these countries estimated as follows: France: 11.00 million, Germany: 13.10 million, UK: 11.60 million, Italy: 16.7 Million

 

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